Throughput

What Is Throughput?

Throughput refers to the amount of “work” a blockchain network can process within a given timeframe, typically measured as transactions per second (TPS) or the computational capacity handled per second. It is a key factor determining whether transactions will queue up and whether fees will spike during periods of congestion.

Think of a blockchain like a highway: the more lanes and faster toll booths, the more cars can pass through per unit of time. Higher throughput means users experience shorter wait times and less fee volatility during peak periods. When throughput is limited, popular activities such as DeFi transactions or NFT minting can experience delays and longer confirmation times.

How Is Blockchain Throughput Measured?

There are two main methods for measuring throughput. The first is TPS, or the number of transactions confirmed per second. While intuitive, this metric can be misleading since different transactions vary in complexity—simply counting transactions does not reflect true network capacity.

The second method uses “gas” as a unit to measure computational throughput. Gas can be thought of as “computational bandwidth”; each operation consumes a different amount of gas. Each block has a gas limit, so dividing the block’s gas limit by block time yields the average gas processed per second. Measuring by gas provides a standardized way to compare operations with varying complexity.

Some also use “data byte throughput” (bytes processed per second) to assess block space utilization, especially in scenarios involving large-scale on-chain data storage. In practice, a comprehensive analysis combines TPS, gas, and byte-based perspectives.

What’s the Difference Between Throughput and Latency?

Throughput measures “how much can be processed per unit of time,” while latency focuses on “how long it takes for a single transaction to be confirmed from submission.” The two are related but distinct: a chain may have stable latency but low throughput, or high throughput but batch confirmations that delay individual transactions.

In blockchain terminology, “finality” is also crucial—it refers to the time until a transaction is irreversibly confirmed. Some networks produce blocks quickly but have a nonzero probability of rollback in the short term; others offer stronger finality guarantees. To fully evaluate user experience, you should consider throughput, latency, and finality together.

What Factors Determine Blockchain Throughput?

Key factors affecting throughput include block time, block capacity (or gas limit), network propagation speed, and node hardware performance.

• Block time: More frequent blocks mean more transactions can be included per unit time. However, blocks that are too fast increase network propagation stress and may cause higher fork rates.
• Block capacity or gas limit: A higher limit allows more operations per block, but oversized blocks may make it difficult for less powerful devices to sync, potentially reducing node count.
• Network propagation and bandwidth: New blocks and transactions need to be quickly broadcast globally; limited bandwidth creates bottlenecks.
• Execution and storage overhead: Tasks like signature verification, state reads/writes, Merkle/proof computations all constrain the amount of work each block can accomplish.
• Fee mechanism and packaging strategy: For example, fee-based prioritization during congestion favors high-fee transactions, impacting average wait times across transaction types.

Common Strategies for Increasing Throughput

Approaches to boosting throughput generally fall into two categories: on-chain scaling and off-chain load migration with subsequent settlement.

Direct scaling involves increasing block capacity or shortening block time. These changes can quickly improve throughput but may raise hardware requirements for nodes, risking reduced decentralization.

The next major approach is Layer 2 (L2) networks. L2 can be understood as aggregating multiple transactions off-chain, then submitting results to the main chain. Popular implementations include rollup solutions:

• Fraud-proof-based systems achieve secure confirmation after a challenge period;
• Validity-proof-based systems use mathematical proofs to guarantee correctness. Both move most execution off-chain to L2s, significantly increasing effective system throughput.

Sharding distributes overall network load across multiple parallel shard chains, reducing pressure on any single chain.

Parallel execution allows simultaneous processing of non-conflicting transactions, raising single-node throughput. Coupled with more efficient storage and networking protocols, this yields substantial improvements.

Current State of Ethereum Throughput

As of the second half of 2025, Ethereum mainnet maintains robust baseline throughput, prioritizing security and decentralization; major industry improvements come from Layer 2 solutions. With upgrades focused on data availability, L2s see reduced batch costs and increased bandwidth—practical throughput now commonly reaches hundreds or thousands of transactions per second during peak times (see various L2 official dashboards and community trackers for reference as of late 2025).

This means bulk operations on mainnet may still queue during congestion, while high-frequency activities routed through L2s balance cost and speed effectively. For most users, choosing an optimal L2 network greatly improves confirmation experiences.

How Are Throughput and Security Balanced in Layer 2?

Layer 2 networks increase throughput but introduce new trade-offs. The main considerations are whether the sequencer (the entity ordering transactions) is decentralized, downtime risks, and how assets bridge to/from the mainnet with associated finality delays.

• Ordering and batching: If sequencing is controlled by a few entities, downtime or congestion can delay submission batches to the mainnet.
• Data availability: Whether data is accessible on the mainnet determines users’ ability to reconstruct state even if sequencers malfunction.
• Finality and withdrawal: Some L2s require challenge/proof periods before withdrawals to mainnet—high throughput does not always mean faster “mainnet finality.”

When assessing an L2 solution, you should examine throughput alongside downtime history, data availability commitments, and withdrawal processes.

How Should You Use Throughput Information on Gate?

To incorporate throughput considerations into deposits/withdrawals and on-chain interactions on Gate, follow these steps:

1. Before selecting a deposit or withdrawal network on Gate, check if your target chain is congested. Review official status pages or block explorers for TPS/gas utilization charts.
2. During peak periods, avoid sending numerous small transactions on low-throughput mainnets; instead, batch operations via L2 networks before settling with the mainnet.
3. If you must deposit on-chain during congestion, increase priority fees to improve your transaction’s chance of inclusion—just be mindful of overall cost limits.
4. When withdrawing to external addresses, choose networks with stable throughput and reliable data availability guarantees to minimize long wait times.
5. During major events (such as large NFT mints), postpone non-urgent actions or switch to L2s to reduce waiting and fee volatility.

Tip: Asset transfers carry risk. Before switching to new networks, test addresses and workflows with small amounts; for cross-chain or withdrawal actions always verify contract addresses and official channels to avoid phishing links.

How Can You Test a Chain’s Throughput Yourself?

You can combine observation with small-scale practical tests to get direct insights without disrupting the network.

1. Use a block explorer to review recent block intervals, transaction counts per block, and gas utilization over the past hour—calculate average TPS or gas per second and note differences between peak and off-peak periods.
2. Track failure rates and fee trends. If confirmation times increase significantly during peak hours at similar fee levels, effective throughput is insufficient for current demand.
3. On testnets or using small amounts on mainnet, submit multiple transactions of varying complexity—record submission times, inclusion times, and finality confirmation times; compare latency and fees.
4. Repeat sampling at different times (e.g., weekday evenings vs early mornings) for a more accurate picture of throughput and congestion patterns.

Key Takeaways About Throughput

Throughput determines how much work a chain can process per unit time—directly impacting fees and wait times. Measurement should consider both TPS and gas metrics alongside latency and finality. Bottlenecks include block time, block capacity, network propagation speed, and execution/storage overhead. Scalability approaches range from direct expansion to Layer 2 solutions, sharding, and parallel execution—but all require balancing security with decentralization. In practice, consult real-time on-chain metrics when choosing networks for deposits/withdrawals or major events; strategically timing actions helps minimize costs and waiting risks.

FAQ

Why Does Low Blockchain Throughput Affect My Transactions?

Low throughput means the blockchain can only process a limited number of transactions per second—when the network is busy your transaction may queue up and wait. This leads to slower confirmations and potentially higher gas fees. For example, Bitcoin handles only about seven transactions per second; during peak times you could wait hours for inclusion.

Why Are Some High-Throughput Chains Less Popular?

High throughput is just a technical metric—actual network adoption requires strong ecosystem applications. Some chains can process thousands of transactions per second but lack quality DApps, liquidity, or an active user base; speed alone doesn’t drive usage. Throughput is necessary for robust public chains but not sufficient by itself.

Should I Choose High-Throughput Chains or More Secure Ones?

It depends on your use case. For large asset transfers, prioritize security (choose chains like Bitcoin or Ethereum mainnet) since security breaches are irreversible; for everyday small transactions or DApp interactions, high-throughput chains (such as Arbitrum or Optimism) offer faster confirmations. Gate supports leading public chains so you can select flexibly based on your needs.

Can Layer 2 Solutions Scale Throughput Infinitely?

Layer 2 solutions dramatically boost throughput (often 100–1000x), but not infinitely. They speed things up by aggregating transactions off-chain before regularly submitting summaries to the mainnet. Ultimately throughput is capped by mainnet capacity—and you must balance scalability with security and decentralization.

Is Slow Transaction Inclusion Always Caused by Throughput Limits?

Not always. Slow transaction processing can be due to: network congestion hitting throughput limits (most common), low gas fee bids lowering transaction priority, or node sync delays. Monitor real-time network congestion and adjust your gas fees accordingly; Gate’s trading system provides current network status prompts so you can make informed decisions.